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Morning opening: ‘Nice to wrap it all up in one package’
In a significant move, US President Donald Trump has paused his plans for “reciprocal” tariffs for a period of 90 days for all nations except China. This action aims to foster negotiations for improved trade arrangements and retreat from the edge of a full-scale trade conflict.
During a press interaction, Trump expressed surprise when queried about the European Union’s retaliatory tariffs that were instituted recently. His aides promptly reassured him, indicating that these tariffs would likely be postponed indefinitely.
In response, European Commission President Ursula von der Leyen praised Trump’s decision, calling it “an important step towards stabilising the global economy.” She reiterated her vision for a zero-for-zero tariff arrangement with the US, aspiring for “frictionless and mutually beneficial trade.”
Despite these positive developments, the situation remains complex. Trump’s statements in the Oval Office suggested he may once again tie the presence of US troops in Europe to the outcomes of trade negotiations with the EU.
When asked if he envisioned a reduction in US military presence in Europe, following media reports on potential troop withdrawals, he responded:
Well, we could. I mean, it depends. We pay for military over in Europe. You know, we don’t get reimbursed by much. …
So it would be one of the things we discuss that’s unrelated to trade, but I think we’ll make it part of it, because [it] makes sense, [would] be nice to wrap it all up in one package for each country. You know, it’s nice and clean.
These comments have revived concerns regarding the future of the US military’s role in Europe, especially after Poland and Romania expressed alarm earlier this week over reports indicating a potential withdrawal of up to 10,000 US troops from the region.
Previously, US General in Europe Christopher Cavoli had indicated a desire to maintain the current level of US forces stationed in the region (as discussed on Europe Live earlier this week).
However, US Defense Secretary Pete Hegseth added a note of uncertainty in his latest comments, stating that “the only person that will make a determination about the force structure of US troops in Europe will be President Trump.”
“We will continue to have ongoing discussions, including inside the context of Ukraine-Russia negotiations, of what our force posture should be on the continent that best addresses American interests and ensures burden sharing in Europe as well,” he emphasized.
Considering Russia’s previous demands for the demilitarization of certain European areas, this ambiguity is likely to exacerbate concerns among regional allies.
These statements emerge as key representatives from the “Coalition of the Willing” convene in Brussels to deliberate on future strategies for Ukraine, with much on the table for discussion.
Stay tuned for updates throughout the day.
Today is Thursday, 10 April 2025. This is Europe Live.
Good morning.
Updated at 11.06 CEST
US-Ukraine technical consultations on minerals deal to start on Friday
Starting Friday, technical consultations regarding a minerals agreement will commence in Washington between the United States and Ukraine, as reported by the Interfax Ukraine news agency, citing Ukrainian Deputy Prime Minister Olha Stefanishyna.
France could recognise Palestinian state ‘in June,’ Macron says
In other international developments, French President Emmanuel Macron made headlines with a declaration that France is poised to recognize a Palestinian state within the upcoming months. He suggested this could possibly occur during a United Nations conference in New York in June aimed at addressing the Israel-Palestinian conflict.
“We must move towards recognition, and we will do so in the coming months,” Macron stated during an interview on France 5 television. He emphasized the importance of this recognition in contributing to a collective peace process.
Macron remarked:
I will do it because I believe that at some point it will be right and because I also want to participate in a collective dynamic, which must also allow all those who defend Palestine to recognize Israel in turn, which many of them do not do.
This recognition would enable France “to be clear in our fight against those who deny Israel’s right to exist – which is the case with Iran – and to commit ourselves to collective security in the region,” he explained further.
France has consistently advocated for a two-state solution to the Israel-Palestinian conflict, particularly following the October 7, 2023, attack on Israel by militants from Hamas.
For more details, follow our Middle East blog here:
Spanish prime minister hails tariff pause as ‘door to negotiation’ with US
Spanish Prime Minister Pedro Sánchez has expressed his approval of the tariff suspension, characterizing it as a “door to negotiation and opportunities for deals between nations.”
Currently on a trade mission in Southeast Asia, he criticized Trump’s earlier decision to impose tariffs broadly—including a steep 46% on Vietnam—as “an unjustified and unjust decision.”
With negotiations potentially on the horizon, Sánchez asserted that Spain would advocate tirelessly for a “world of open doors,” further noting:
“Spain’s response is being coordinated with the EU in order to protect our exporters. Not a single business will be left exposed because of this measure.”
Greek prime minister calls for ‘win-win’ deal with US
Greek Prime Minister Kyriakos Mitsotakis proposed a “win-win” trade agreement with the US, advocating for a mutually beneficial resolution between the EU and the United States.
In an interview with Breitbart US, he stated there is “still room for negotiations before we consider any significant reciprocal response beyond what has been announced today, which was, in any case, the expected EU reaction.”
“Ultimately, Europe and the European market are vital for the US, and conversely, the US holds considerable importance to Europe, so we must collaborate to find a solution,” he added.
European markets soar at the open
Reflecting the positive sentiment surrounding Trump’s tariff freeze, European stock markets have surged at the opening.
Indices such as the German DAX, the French CAC 40, and the broader Stoxx 600 have all seen gains of approximately 7%, while the British FTSE 100 has increased by nearly 6%.
Stay updated with our business blog for the latest developments:
Source
www.theguardian.com